Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83579
Authors: 
Krusper, Balázs
Year of Publication: 
2012
Series/Report no.: 
MNB Working Papers 2012/5
Abstract: 
Recent literature suggests that the co-movement of inflation is rather strong across countries. We use a factor model to asses this co-movement within the EU, while we differentiate between common (EU) and regional (CEE) effects. We find that price dynamics in Western European countries share a common pattern, while CEE countries can be divided into subgroups according to their inflation history. Results indicate that the monetary policy regime is a very important source of the difference among CEE countries. This method also allows us to examine how external and country-specific components contributed to the Hungarian inflation. We find that Hungary, similar to other countries in the region, experienced a disinflation period before the EU accession. However, country specific components (e.g. VAT changes or monetary policy) also played an important role.
Subjects: 
inflation dynamics
factor model
JEL: 
C33
E31
E42
E58
Document Type: 
Working Paper

Files in This Item:
File
Size
418.94 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.